Institutionalization of corruption



Definition


Institutionalization of corruption can be defined as the long-term consequence of corruptive behavior in a society. Institutionalization of corruption refers the phase when corruption accesses the value-system in society and becomes a habit and part of the cultural behavior. Corruption can be perceived as a serious problem, and institutionalized, when corruptible behavior has become rather a rule than an exception [1]
"...institutionalization, where an initial corrupt decision or act becomes embedded in structures and processes and thereby routinized... [2] "

Institutionalization of corruption in the corporate world


Institutionalization of corruption in organizations is caused by repeated acts considered corruptive (e.g. bribes), and that has led to the normalization of corruption. This might be caused by an authorizing ethical environment where the company's financial goals are highly underlined and where members of the organization are given the right to act in an immoral manner. Leaders within organizations can be considered to have the most influence, in terms of corruptible behavior and can, therefore, be seen as the ones to prevent or to encourage the institutionalization process of corruption [3] .

Corporate corruption and CSR (Corporate Social Responsibility)


CSR can be used as a tool to prevent corporate corruption. An extensive CSR strategy can prevent corporate corruption as it can be used to set regulations that will emphasize the surveillance and the penalization of employees. However, in the case of institutionalized corruption, corruption being a part of the routines in a corporation, it can be difficult to the difference between correct and incorrect behavior. Organizational leaders have a important role in encouraging employees to reflect over their own actions as well as in defining the ethical norms of the that should be respected within the organization [4] .
  1. ^ Obafemi Awolowo (2002). The institutionalization of corruption and its impact on political culture and behaviour in Nigeria. Nordic Journal of African Studies 11(3): 393-402.
  2. ^ Blake E. Ashforth and Vikas Anand (2003). The Normalization of Corruption in Organizations. Research in Organizational Behavior Vol. 25: 1-52.
  3. ^ Blake E. Ashforth and Vikas Anand (2003). The Normalization of Corruption in Organizations. Research in Organizational Behavior Vol. 25: 1-52.
  4. ^ Yi-Hui Ho, Chieh-Yu Lin (2012). Preventing Corporate Corruption: The Role of Corporate Social Responsibility Strategy.
    International Journal of Business and Behavioral Sciences Vol. 2, No.1; January 2012.